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RESULTS REVIEW 1QFY20 18 JULY 2019

Colgate-Palmolive (India) NEUTRAL

Story remains sombre… Colgate’s 1Q performance was slightly below our estimates (revenue and APAT). The story remains sombre but senior level management churn instills new hope. We cut EPS by ~2% to factor slower than expected recovery in FY20. We roll forward to Jun-21 EPS and value the co. at 35x, arriving at a TP of Rs 1,281. Maintain NEUTRAL.

HIGHLIGHTS OF THE QUARTER Revenues grew by 4% (vs. exp. of 6%) driven by 4%

volume growth. Domestic biz was up by 6%. Volumegrowth was sluggish given (a) Slowdown in rural (nowtrailing urban), (b) Market share loss (-25bps YoY to52.7%) and (c) Slow-moving category growth (trailsFMCG sector by 2-3%). Competitive intensity remainshigh particularly at LUP (Rs 10/pack).

Naturals growth has now tapered to mid-teens from 25-30% range as it has attained a meaningful share (>25%mix in oral care category). Within naturals, Colgate hasgained market share (8.1% in CY18 vs. 6.5-7% in CY17)led by Swarna Vedshakti and re-launch of Colgate Salt.

Premium segment (4% mix vs. 8% mix earlier) hasreturned back to growth (single-digit) vs. degrowthearlier (impacted by naturals). Co. has re-launchedColgate Total to capitalize on this trend.

Colgate was able to arrest GM pressure (-5bps YoY)after a sharp decline in 4QFY19 (-110bps). A&P/Otherexpenses grew by 5/-3% which resulted in 6.5% growthin EBITDA (vs. exp of 5.5%). Co continues to spendhandsomely on A&P (~13% of sales) and henceaggression hereon seems unlikely.

APAT grew by modest 5% to Rs 1.69bn (exp Rs 1.78bn)owing to higher other income (+66%) and higher taxes(+204bps).

STANCE

Colgate’s market share has largely stabilized but we still don’t see signs of gaining meaningful share anytime soon. As a category leader, Colgate needs to drive category growth at a time when natural’s fad is moderating. Senior level management churn (Ram Raghavan - MD and Mukul Deoras – India chairman) keeps us interested in the story. Ram began his career as a management trainee with Colgate India in 1997. His recent experience as the head of innovation center at Colgate-Palmolive LATAM is exactly what Colgate India needs i.e. product excitement and diversification. With limited upside, we remain NEUTRAL on the company. We will be tracking any revamp in strategy that may trigger our upgrade.

Financial Summary YE March (Rs mn) 1QFY20 1QFY19 YoY (%) 4QFY19 QoQ (%) FY18 FY19P FY20E FY21E FY22E Net Revenues 10,849 10,413 4.2 11,538 (6.0) 41,880 44,646 48,350 53,246 58,313 EBITDA 2,998 2,816 6.5 3,104 (3.4) 11,125 12,361 13,723 15,539 17,391 APAT 1,691 1,615 4.7 2,002 (15.5) 6,816 7,502 8,389 9,652 10,893 Diluted EPS (Rs) 6.2 5.9 4.7 7.4 (15.5) 25.0 27.6 30.8 35.5 40.0 P/E (x) 48.0 43.7 39.0 33.9 30.1 EV / EBITDA (x) 29.0 26.2 23.4 20.5 18.1 Core RoCE (%) 64.4 67.2 70.6 78.4 89.1

Source: Company, HDFC sec Inst Research

INDUSTRY FMCG CMP (as on 18 Jul 2019) Rs 1,203 Target Price Rs 1,281 Nifty 11,597 Sensex 38,897 KEY STOCK DATA Bloomberg CLGT IN No. of Shares (mn) 272 MCap (Rs bn) / ($ mn) 327/4,750 6m avg traded value (Rs mn) 531 STOCK PERFORMANCE (%) 52 Week high / low Rs 1,365/1,018

3M 6M 12M Absolute (%) (1.1) (8.2) 8.7 Relative (%) (0.5) (15.1) 1.7 SHAREHOLDING PATTERN (%)

Dec-18 Mar-19 Promoters 51.00 51.00 FIs & Local MFs 11.93 10.18 FPIs 13.86 15.37 Public & Others 23.21 23.45 Pledged Shares (% of total shares) - -

Source : BSE

Naveen Trivedi [email protected] +91-22-6171-7324

Siddhant Chhabria [email protected] +91-22-6171-7336

HDFC securities Institutional Research is also available on Bloomberg HSLB <GO>& Thomson Reuters

COLGATE-PALMOILIVE: RESULTS REVIEW 1QFY20

Quarterly Financials Particulars (Rs mn) 1QFY20 1QFY19 YoY (%) 4QFY19 QoQ (%) FY19 FY18 YoY (%) Net Revenue 10,849 10,413 4.2 11,538 (6.0) 44,624 41,880 6.6 Material Expenses 3,704 3,550 4.3 4,088 (9.4) 15,586 14,899 4.6 Employee Expenses 835 749 11.4 735 13.6 2,959 3,059 (3.3) ASP Expenses 1,513 1,435 5.4 1,563 (3.2) 5,647 5,268 7.2 Other Operating Expenses 1,799 1,863 (3.4) 2,048 (12.1) 8,072 7,528 7.2 EBITDA 2,998 2,816 6.5 3,104 (3.4) 12,361 11,125 11.1 Depreciation 499 394 26.6 394 26.7 1,592 1,565 1.7 EBIT 2,500 2,422 3.2 2,711 (7.8) 10,769 9,560 12.6 Other Income 152 92 65.6 120 26.9 377 387 (2.6) PBT 2,651 2,514 5.5 2,830 (6.3) 11,146 9,947 12.1 Exceptional - 341 na (36) na 305 (117) PBT after exceptional 2,651 2,855 (7.1) 2,794 (5.1) 11,451 9,830 16.5 Tax 937 960 (2.4) 793 18.1 3,670 3,097 18.5 RPAT 1,691 1,895 (10.8) 1,976 (14.4) 7,756 6,734 15.2 Adjustments - (280) na 26 na (254) 83 na APAT 1,691 1,615 4.7 2,002 (15.5) 7,502 6,816 10.1 EPS (adjusted) 6.2 5.9 4.7 7.4 (15.5) 27.6 25.1 10.1 Source: Company, HDFC sec Inst Research

Margin Analysis Particulars 1QFY20 1QFY19 YoY (bps) 4QFY19 QoQ (bps) FY19 FY18 YoY (bps) Material Expenses % Net Sales 34.1 34.1 5 35.4 (129) 34.9 35.6 (65) Employee Expenses % Net Sales 7.7 7.2 50 6.4 133 6.6 7.3 (67) ASP Expenses % Net Sales 13.9 13.8 17 13.5 40 12.7 12.6 8 Other Operating Expenses % Net Sales 16.6 17.9 (131) 17.7 (116) 18.1 18.0 11 EBITDA Margin (%) 27.6 27.0 59 26.9 73 27.7 26.6 113 Tax Rate (%) 35.3 33.6 173 28.4 695 32.0 31.5 55 APAT Margin (%) 15.6 18.2 (261) 17.1 (154) 17.4 16.1 130 Source: Company, HDFC sec Inst Research

Revenue growth of 4% (exp 6%) was driven by 4% volume growth (4% exp.). Domestic revenues grew by 6% Colgate lost ~25bps YoY market share during the quarter Gross margins were arrested after steep decline in 4QFY19 Cost savings drive continues to support EBITDA growth In 1QFY19, exceptional was on account of gain from sale of factory at Aurangabad

Page | 2


Net Revenue Volume Growth

Source: Company, HDFC sec Inst Research Note: 1QFY16-4QFY16 growth is based on old AS


Gross Margin Change EBITDA Margin Change

Source: Company, HDFC sec Inst Research Note: 1QFY16-4QFY16 change is based on old AS

Source: Company, HDFC sec Inst Research Note: 1QFY16-4QFY16 change is based on old AS

Volume growth was sluggish given (a) Slowdown in rural (now trailing urban), (b) Market share loss (-25bps YoY to 52.7%) and (c) Slow-moving category growth (trails FMCG sector by 2-3%)

Gross margins remain under pressure as benefit from low crude costs is now behind and promotion intensity remains high

(15.0)

(10.0)

(5.0)

-

5.0

10.0

15.0

20.0

25.0

-

3,000

6,000

9,000

12,000

4QFY

161Q

FY17

2QFY

173Q

FY17

4QFY

171Q

FY18

2QFY

183Q

FY18

4QFY

181Q

FY19

2QFY

193Q

FY19

4QFY

191Q

FY20

Net Sales YoY Growth - RHS

(Rs mn) (%)

6 6 4

(12)

(3)(5)

(1)

12

4 4 7 7

5 4

(15)

(10)

(5)

-

5

10

15

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

1QFY

20

(%)

34

139 91 76

142 108

41

130

304 255

136

(5)

(110)

(5)

(210)

(100)

10

120

230

340

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

1QFY

20

(bps)

(211)(105)

(35)(47)(21)

183 171

286

464 436

51 127

(128)

59

(300)

(50)

200

450

700

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

1QFY

20

(bps)

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Employee Expense Advertising Expense



Gross Margin EBITDA Margin

Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Colgate has rationalised its other expenses and advertising spend to drive EBITDA growth

13 16

26

(1)

2

(2)

13 15

(1)

3

(7) (5) (3)

11

4.0

5.0

6.0

7.0

8.0

(25)

(10)

5

20

35

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

1QFY

20

Employee Gr. (%) Employee (% of sales) - RHS(%)

28 24

28

(21)

24

(8) (7)

44

(0)

0

17

4 9 5

-2 4 6 8 10 12 14 16 18 20

(30)

-

30

60

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

1QFY

20

Advertising Gr. (%) Advertising (% of sales) - RHS(%)

61.2

62.3

63.0

63.9

62.6

63.4

63.4

65.2

65.7

65.9

64.8

65.1

64.6

65.9

57.0

59.0

61.0

63.0

65.0

67.0

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

1QFY

20

(%)

23.8

20.9

26.0

24.5

23.5

22.7

27.7

27.3

28.2

27.0

28.2

28.6

26.9

27.6

10.0

15.0

20.0

25.0

30.0

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

1QFY

20

(%)

Page | 4


Colgate’s Toothpaste Market Share Colgate’s Toothbrush Market Share

Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Market share declines in the last 2 years for Colgate in toothpaste have come from its premium segment (Colgate Sensitive and Colgate Total). The premium segment revenue contribution is at ~4% vs. ~8% earlier

Market share has now largely stabilized at ~52%

Colgate continued to face intense competition in the naturals segment (25% mix for industry) which is dominated by Dabur and Patanjali (80% combined share)

57.3

55

.3 55

.9

55.7

55

.4

55.1

54

.3

54.0

53

.7

53.4

52

.4

52.5

52

.2

52.2

52

.2

49.0 50.0 51.0 52.0 53.0 54.0 55.0 56.0 57.0 58.0

3QFY

164Q

FY16

1QFY

172Q

FY17

3QFY

174Q

FY17

1QFY

182Q

FY18

3QFY

184Q

FY18

1QFY

192Q

FY19

3QFY

194Q

FY19

1QFY

20

(%)

43.8

45.8

46.8

46.6

47

.0

47.4

45.0

45.5

45.1

44

.8

44.6

44.2

46.6

48.0

41.0

42.0

43.0

44.0

45.0

46.0

47.0

48.0

49.0

3QFY

16

4QFY

16

1QFY

17

2QFY

17

3QFY

17

4QFY

17

1QFY

18

2QFY

18

3QFY

18

4QFY

18

1QFY

19

2QFY

19

3QFY

19

4QFY

19

(%)

Page | 5


Toothpaste Market Share


Toothbrush Market Share


Sharp decline in toothpaste market share during CY15-18 has started stabilizing

Toothbrush exit volume market share in Mar’19 was at ~48%

48.8 49.452.2 53.3 52.7 54.5 56.1 56.8 57.2 55.5 53.6 52.4

25.1 24.6 22.8 22.6 23.3 23.5 22.8 21.7 19.8 19.2 17.7 17.3

11.9 12.2 12.9 13.7 14.8 14.0 13.4 13.4 14.0 15.3 15.415.1

0.0 0.1 0.4 0.6 1.22.9

6.8 8.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18

Colgate Competitor 1 Competitor 2 Competitor 3(%)

33.438.4 38.2 35.9

39.8 41.5 43.0 44.447.3 45.1 45.2

11.4 11.914.8

17.8 18.8 18.4 18.4 17.414.6 14.2 15.2

5.9 6.4 7.2 7.2 6.7 7.5 8.0 9.3 10.7 11.0 9.90.0

10.0

20.0

30.0

40.0

50.0

60.0

CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18

Colgate Competitor 1 Competitor 2(%)

Page | 6


Per Capita Consumption


Assumptions

FY18 FY19P FY20E FY21E FY22E Toothpaste revenue growth 7.4 6.8 8.2 9.9 9.1 Toothpaste volume growth 2.5 5.8 6.1 7.3 7.0 GM (%) 64.4 65.1 65.4 66.0 66.4 Employee (% of sales) 7.3 6.6 6.7 6.5 6.4 ASP (% of sales) 12.6 12.7 12.8 13.0 13.0 Distribution (% of sales) 3.1 3.0 3.0 3.0 3.0 Royalty (% of sales) 4.9 4.9 4.9 4.9 4.9 Other expenses (% of sales) 9.9 10.2 9.5 9.3 9.3 EBITDA Margin (%) 26.6 27.7 28.4 29.2 29.8 Tax Rate (%) 31.5 32.1 32.1 32.1 32.1 Source: Company, HDFC sec Inst Research

603

458

312

212158

0

100

200

300

400

500

600

700

Brazil USA Philipines China India

(Gms)

Page | 7


Change In Estimates

OLD NEW Change (%)

FY20E FY21E FY20E FY21E FY20E FY21E Net Sales 48,350 53,246 48,962 53,947 -1.2% -1.3% EBITDA 13,723 15,539 14,007 15,891 -2.0% -2.2% PAT 8,389 9,652 8,579 9,900 -2.2% -2.5% EPS 30.8 35.5 31.5 36.4 -2.2% -2.5% Source: HDFC sec Inst Research Peer Set Comparison

Company MCap

(Rs bn)

CMP (Rs) Reco. TP

(Rs)

EPS (Rs) P/E (x) EV/EBITDA (x) Core RoCE (%)

FY19P FY20E FY21E FY19P FY20E FY21E FY19P FY20E FY21E FY19P FY20E FY21E

HUL 3,757 1,739 NEU 1,817 28.1 33.3 41.0 61.8 52.2 42.4 41.6 37.8 29.6 69.2 28.5 22.1 ITC 3,083 273 BUY 397 10.4 11.3 12.4 26.2 24.1 22.0 16.7 14.9 13.4 39.2 40.9 43.7 Nestle 1,118 11,596 NR 11,064 167.1 206.5 245.9 69.4 56.2 47.2 39.9 34.2 29.2 82.1 101.4 121.4 Dabur 756 429 BUY 457 8.2 10.0 12.0 52.3 42.8 35.6 42.0 35.4 29.6 47.5 53.9 60.6 Britannia 677 2,821 NEU 3,011 48.1 55.2 66.9 58.7 51.1 42.2 38.3 32.6 27.0 39.2 40.4 45.0 Marico 478 370 BUY 384 7.2 9.0 10.8 51.4 41.0 34.2 37.2 30.1 25.8 48.8 48.1 54.5 Colgate 327 1,203 NEU 1,281 27.6 30.8 35.5 43.7 39.0 33.9 26.2 23.4 20.5 67.2 70.6 78.4 Emami 150 321 BUY 500 11.0 13.6 15.6 29.2 23.6 20.6 19.7 16.4 14.3 21.5 28.4 34.1 Jub. Food 164 1,246 BUY 1,755 24.1 30.4 38.1 51.7 40.9 32.7 26.3 21.2 17.1 45.8 56.6 68.6 Source: HDFC sec Inst Research

We cut EPS by ~2% to factor slower than expected recovery in FY20.

Page | 8

COLGATE-PALMOLIVE : RESULTS REVIEW 1QFY20

Income Statement (Rs mn) FY18 FY19P FY20E FY21E FY22E Net Revenues 41,880 44,646 48,350 53,246 58,313 Growth (%) 5.2 6.6 8.3 10.1 9.5 Material Expenses 14,901 15,586 16,453 17,825 19,290 Employee Expense 3,059 2,959 3,261 3,591 3,933 ASP Expense 5,268 5,647 6,189 6,922 7,581 Distribution Expense 1,315 1,339 1,451 1,597 1,749 Other Expenses 6,211 6,755 7,274 7,772 8,369 EBITDA 11,125 12,361 13,723 15,539 17,391 EBITDA Growth (%) 17.8 11.1 11.0 13.2 11.9 EBITDA Margin (%) 26.6 27.7 28.4 29.2 29.8 Depreciation 1,565 1,592 1,781 1,971 2,160 EBIT 9,560 10,769 11,942 13,568 15,231 Other Income (Inc. EO Items) 270 682 510 748 918 Interest - 25 94 98 102 PBT 9,830 11,426 12,358 14,219 16,047 Total Tax 3,097 3,670 3,969 4,567 5,154 RPAT 6,734 7,756 8,389 9,652 10,893 Adjustments (83) 254 - - - Adjusted PAT 6,816 7,502 8,389 9,652 10,893 APAT Growth (%) 18.0 10.1 11.8 15.1 12.9 Adjusted EPS (Rs) 25.0 27.6 30.8 35.5 40.0 EPS Growth (%) 18.0 10.1 11.8 15.1 12.9


Balance Sheet (Rs mn) FY18 FY19P FY20E FY21E FY22E SOURCES OF FUNDS Share Capital - Equity 272 272 272 272 272 Reserves 14,974 14,614 17,761 20,851 24,193 Total Shareholders’ Funds 15,246 14,886 18,033 21,123 24,465 Long Term Debt - 777 777 777 777 Short Term Debt - - - - - Total Debt - 777 777 777 777 Net Deferred Taxes 355 309 309 309 309 Other Non-current Liabilities & Provns 209 201 201 201 201

TOTAL SOURCES OF FUNDS 15,811 16,172 19,319 22,409 25,752 APPLICATION OF FUNDS Net Block 11,460 11,909 12,127 12,157 11,996 CWIP 1,586 1,987 1,987 1,987 1,987 Other Non-current Assets 1,978 1,903 2,522 2,776 3,043 Total Non-current Assets 15,024 15,798 16,636 16,920 17,026 Inventories 2,267 2,486 2,694 2,967 3,250 Debtors 2,010 2,098 2,272 2,502 2,740 Other Current Assets 1,465 1,611 1,772 1,950 2,145 Cash & Equivalents 4,873 4,689 7,235 10,372 13,953 Total Current Assets 10,615 10,884 13,973 17,791 22,088 Creditors 6,145 6,132 6,577 7,161 7,772 Other Current Liabilities & Provns 3,683 4,378 4,713 5,140 5,590 Total Current Liabilities 9,828 10,510 11,290 12,302 13,362 Net Current Assets 788 374 2,684 5,489 8,726 TOTAL APPLICATION OF FUNDS 15,811 16,172 19,319 22,409 25,752


Page | 9


Cash Flow Statement (Rs mn) FY18 FY19P FY20E FY21E FY22E Reported PBT 9,947 11,426 12,358 14,219 16,047 Non-operating & EO Items 81 - - - - Interest Expenses (290) 25 94 98 102 Depreciation 1,565 1,592 1,781 1,971 2,160 Working Capital Change (889) 620 (217) 295 304 Tax Paid (3,474) (3,670) (3,969) (4,567) (5,154) OPERATING CASH FLOW ( a ) 6,939 9,992 10,047 12,015 13,458 Capex (2,087) (2,442) (2,000) (2,000) (2,000) Free Cash Flow (FCF) 4,852 7,550 8,047 10,015 11,458 Investments (273) - - - - Non-operating Income 287 (312) (162) (215) (222) INVESTING CASH FLOW ( b ) (2,073) (2,754) (2,162) (2,215) (2,222) Debt Issuance/(Repaid) - 777 - - - FCFE 4,866 8,016 7,885 9,801 11,236 Share Capital Issuance - - - - - Dividend (3,705) (7,862) (5,241) (6,562) (7,550) Others (92) (298) (97) (101) (105) FINANCING CASH FLOW ( c ) (3,798) (7,382) (5,339) (6,663) (7,655) NET CASH FLOW (a+b+c) 1,068 (144) 2,546 3,138 3,581 EO Items, Others (550) 41 - - - Closing Cash & Equivalents 4,562 4,377 6,923 10,061 13,641


Key Ratios FY18 FY19P FY20E FY21E FY22E PROFITABILITY (%) GPM 64.4 65.1 66.0 66.5 66.9 EBITDA Margin 26.6 27.7 28.4 29.2 29.8 EBIT Margin 22.8 24.1 24.7 25.5 26.1 APAT Margin 16.3 16.8 17.3 18.1 18.7 RoE 48.7 49.8 51.0 49.3 47.8 RoIC (or Core RoCE) 64.4 67.2 70.6 78.4 89.1 RoCE 47.9 47.9 48.1 47.0 45.8 EFFICIENCY Tax Rate (%) 31.5 32.1 32.1 32.1 32.1 Fixed Asset Turnover (x) 2.1 2.0 2.0 2.0 2.1 Inventory (days) 19.8 20.3 20.3 20.3 20.3 Debtors (days) 17.5 17.2 17.2 17.2 17.2 Other Current Assets (days) 12.8 13.2 13.4 13.4 13.4 Payables (days) 53.6 50.1 49.6 49.1 48.6 Other Current Liab & Provns (days) 32.1 35.8 35.6 35.2 35.0 Cash Conversion Cycle (days) (35.6) (35.3) (34.4) (33.5) (32.7) Net D/E (x) (0.3) (0.3) (0.4) (0.5) (0.5) Interest Coverage (x) na na na na na PER SHARE DATA (Rs) EPS 25.0 27.6 30.8 35.5 40.0 CEPS 30.8 33.4 37.4 42.7 48.0 Dividend 24.0 16.0 20.0 23.0 26.0 Book Value 56.0 54.7 66.3 77.6 89.9 VALUATION P/E (x) 48.0 43.7 39.0 33.9 30.1 P/BV (x) 21.5 22.0 18.2 15.5 13.4 EV/EBITDA (x) 29.0 26.2 23.4 20.5 18.1 EV/Revenues (x) 7.7 7.2 6.6 6.0 5.4 OCF/EV (%) 2.2 3.1 3.1 3.8 4.3 FCF/EV (%) 1.5 2.2 2.5 3.1 3.6 FCFE/Mkt Cap (%) 1.5 2.4 2.4 3.0 3.4 Dividend Yield (%) 2.0 1.3 1.7 1.9 2.2


Page | 10


RECOMMENDATION HISTORY

Rating Definitions BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

Date CMP Reco Target 9-Jul-18 1,183 NEU 1,219

27-Jul-18 1,085 NEU 1,185 10-Oct-18 1,050 NEU 1,164 29-Oct-18 1,102 NEU 1,163 9-Jan-19 1,311 NEU 1,248

24-Jan-19 1,322 NEU 1,254 10-Apr-19 1,231 NEU 1,260 28-May-19 1,180 NEU 1,227

9-Jul-19 1,164 NEU 1,231 18-Jul-19 1,203 NEU 1,281

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

Jul-1

8

Aug-

18

Sep -

18

Oct

-18

Nov-

18

Dec-

18

Jan-

19

Feb-

19

Mar

-19

Apr-

19

May

-19

Jun-

19

Jul-1

9

Colgate TP

HDFC securities Institutional Equities Unit No. 1602, 16th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel,Mumbai - 400 013 Board : +91-22-6171 7330 www.hdfcsec.com

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